The oil and gas sector massively outperformed broader markets last year. It returned 55%, while the TSX Composite Index fell 6% amid one of the most volatile years. Interestingly, Canada’s largest natural gas producer, Tourmaline Oil ( TSX:TOU ), returned 80% last year, notably beating its peers. TOU stock has returned 750% since the pandemic. Demand-supply issues dominated global energy markets after the war broke out in Europe in 2022. As a result, natural gas prices doubled and remarkably benefited producers. Like peer TSX energy names, Tourmaline saw record earnings in 2022. Thanks to its deleveraging efforts, Tourmaline’s balance sheet has significantly improved since the pandemic. Debt was around 15%–20% of its total capital in 2020, which has now fallen below 3%. This is because it used its excess cash to repay debt and achieve a stronger balance sheet position. Moreover, TOU paid a total dividend of $7.90 per share last year, almost five times higher than in 2021. This implies an annualized yield of 12.6%, including special dividends. Noteworthy, Tourmaline looks well-placed to pay attractive dividends in 2023 as well. Zoom→ What’s so special about Tourmaline Oil? Tourmaline has high-quality reserves in the Western Canadian Sedimentary basin with […]
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